Mercedes-Benz dealers look set to challenge DaimlerChrysler's plans to terminate all their contracts within one year.

At a meeting today of the Mercedes dealer council more than 150 dealers, representing 90% of the network, were reportedly unanimous in their view that a legal challenge against DaimlerChrysler's decision should be made.

Alan Pulham, franchised dealer director of the Retail Motor Industry Federation (RMI), responding to the question at the meeting on why DaimlerChrysler was taking these 'extreme' measures in the UK when customer levels satisfaction levels were so high, said: "If this situation goes unchallenged customers will suffer and competition in the market place will be reduced."

Yesterday, Mercedes-Benz announced that in the future its network will feature Mercedes-Benz Experience Centres in London, Birmingham and Manchester, owned by the manufacturer and supported by a national network of Market Area Concepts (MACs) including dealers, satellites, service stations and high street retail outlets.